ARMENTEL TO LOWER MOBILE COMMUNICATION TARIFFS IN ARMENIA STARTING JULY 1 2005

YEREVAN, June 29. /ARKA/. ArmenTel telecommunication company will
introduce new lowered tariffs for mobile communication services
in Armenia starting July 1, 2005. According to the source in the
company, all the settlements of accounts with the subscribers will
be carried out not in USd, but in Armenian national currency. The
cost of 1 minute talk for the holders of Easy Card prepayment system
will make AMD 99 instead of AMD 134. The tariff for international
(addition to international tariff of ArmenTel) will also be lowered
to AMD 99. The sending of SMS will cost AMD 19, against former AMD 27.

According to ArmenTel, the one time guarantee sum for SIM-card holders,
paid by the subscriber as prepayment for the card activation and
returned to him in 11 months will make AMD 22 thou against AMD 55,2
thou. The monthly subscriber fee for 1st year will make AMD 5 thou
(previously – AMD 6676). The cost for all types of local calls is
set at AMD 45 against AMD 56 per minute. The cost of 1 minute of
international call is lowered from AMD 53 to AMD 30. Sending of SMS
will cost AMD 16 instead of former AMD 22.

OTE Greek Telecommunications Company purchased 90% of shares of
ArmenTel IN 1997 for $142,47 mln. Till the Ra Government deprivet the
company of its exclusive right on November 4, 2004, ArmenTel was the
monopolist in the market of mobile communications in Armenia.

Note, starting from July 1, 2005 K-Telecom company with its VivaCell
trademark will enter the Armenian mobile communication market. ($1 =
AMD 443,22). L.V. -0–